OURPALM(SZ:300315) Xin Lang Zheng Quan·2025-09-12 08:22Core Viewpoint - The article highlights the significant decline in performance of Zhangqu Technology, juxtaposed with the increase in compensation for its chairman, Liu Huicheng, raising concerns about corporate governance and strategic direction [1][2][5]. Financial Performance - In the first half of 2025, Zhangqu Technology reported revenue of 358 million yuan, a year-on-year decrease of 23.44%, and a net profit of 48 million yuan, down 65.58% [1]. - The company's net profit for 2024 decreased by 40.68%, with the first half of 2025 showing a decline of over 60% both year-on-year and quarter-on-quarter [2]. - Revenue has been in continuous decline since 2021, with total revenue for 2024 at 819 million yuan, less than half of the 2020 figure [1]. Executive Compensation - Liu Huicheng's salary for 2024 was 3.5921 million yuan, an increase of 14.44% from 2023, while the overall executive compensation decreased by 1.85% [2]. - The average salary for the executive team was 2.0301 million yuan, with Liu's compensation significantly higher than this average [2]. Product and R&D Challenges - The company's revenue heavily relies on three aging products, which together contribute over 60% of total revenue, while new products remain in development [2]. - The number of R&D personnel decreased from 1,038 in 2020 to 477 in 2024, a reduction of over 50% [3]. - Despite maintaining a R&D expense ratio of around 30%, the total R&D expenditure in 2024 was only 263 million yuan, significantly lower than competitors [3]. Market Position and Industry Context - The gaming industry is undergoing a transformation towards premium and global offerings, with the Chinese gaming market growing by 14.08% to 168 billion yuan in the first half of 2025 [5]. - Zhangqu Technology faces increasing competition, with Tencent and NetEase holding 65% of the market share, and must launch new SLG products within 12-18 months to avoid further market share erosion [5]. - The company's challenges reflect broader issues faced by mid-sized gaming firms during industry transitions, including product lifecycle management and strategic execution [5].